Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1887-04-28
Explain and EDUGlFR
Huntington Explains How
Money is Spent in
Washington.
The Great Corporations
Must Spend Thousands
to Explain"
The Union Pacific Omitted
in the Section -Four
Suspension.
Railroad Oficers In Court Stockhold-
ers and Direetors-RaiIroad 0aIesFs
Elected = western Passenger
Agents In Session - Amerl-
Gus Republican Club.


Paciac Railroad CemmiSslon.
NKw YoRK, April 81. - The Pacific
Railroad Congressional Investigation
Oommittee met 81 its Office today 10
Wall street. Ex-Governor Robers E.
Pattisou, Of Pennsylvania, swore in O.
r. Huntington, whs was the frsa Wit
ness. The examination vas conducted
by E Ellery Anderson. The witness
stated that be had been connected With
the road since its organization in 1851.
His particular business vas TO attend to
financial masters. The main offica vas
in San Francisco, where the Directors
meetings took plase. Himself and an
other Vice. President lived in New York,
bat the company had never kspt q SCI Of
books here.
They commenced building the road
with ANAL contractors, and as they did
not get along very well with the CON
struotion, the contract vas let to
Mr.. Orocker. This was within
about one year Of the passage
of the act of 1862. Toe msney for the
vas provided for By con-
tributions. From the time the road
vas commenced to its completion the
prices Of material vent up from 200 to
300 per cent. Iron was $50 per ton.
Locomotives cost 5000, and before they
got through as much as $1,000 was
paid. They paid in gold for all sup
plies, and that was how they came to q
standstill for funds 20 continas Coz
structiou. Garrison aad ID: o. Mills
were asked TO join in the enterprise. but
they could not see their way clear to a
safe investment. Al this time Senator
Stanford and Mr.. Cr0ckeF we're owners
of most Of the stock Of the Contract d
Finance Company, which was organized
TO continue the building Of the road.
The witness then described the diff
calties under which they lab0red before
the different branches. which now con-
stitute the main line, were put thFongh
in the seventies. They purchased steam
boats to run IN connection With the road
from San Francisco and other points
on the Coast. They were a part Of the
purchase Of the California Pacific
which they boaght. Then the steamers
we're sold TO the Central Pacific to be
used as ferry boats. He did not know
how the transfer came about, the price
paid, or what effect 1t had on the mar
ket price Of the stock. The road be
was interested in, the Central Pacific,
be thought was operating those same
steamers today. There was not
much profit in them. The California
and Oregon was consolidated with the
Central Pacific. The California a1d
Oregon ran fFom Portland to San Fran
cisc0 and was an Oregon corporation.
was commenced in 1861.
The last grant was made IN 1866. The
vas etfected about 1870.
After the consolidation the Pacific In
Company vent on with the
of the California and
Oregon TO Redding.
ResuminR be stated that much Of the
stock Of the company vas sent to the
Contract and Finance Company before
the act of 1862, aud again that it was
bis impression that there vas not any
stock issued. The Law required that 10
per cent should be put up before they
could oFRanizs. The contracts we're
paid partly 10 stock and partly in cash.
The cash was produced by individuals.
Il was not paid In Is money subscribed
for stock.
This afternoon @. p. Huntington
stated that the company's lawyer at
was paid 81, 600 per wear
As salary and vas allowed from $50, 900
70 $4,000 to ''explain" 70 the people in
Washington that IL WAS TO the advan-
tage Of the public, and not the company
be was interested in that the company's
schemes should be approved in Congress.
General Franehiat was their counsel for
many years. Their couBsel Was never
asked what be did with the money, nor
was he called upon to produce vouchers.
II be asked for $1,000, be ceuld have il
because the witness knew IL would be
put to good use.
Mr.. Huntingdon told the Commission
ers that they had no idea how many
people there gere in Washington to
whom Il was necessary 10 explain" !"
The Commissioners expressed sorprise
that ne vouchers we're taken for such
large expenditures. Tue balance sheets
published IN the annual statements of
the company were prodaced aud MI.
Huntington vas asked 10 explain an
item Of $4,000 in the statement Of 1873
for legal expenses. The witness said
that be could only offer the same ex-
PLANTATION that be had already given,
that the money vas used in explain
ina" things &c Washington. The com
pany had 10 " educate" the people In
Washington. They had 10 explain"
The witness vas then asked 10 give
"a illustration. be said: You want
10 get Richard Roe. who represents q
certain district, 10 do something. Well,
yos cannot speak 20 him. You send into
bis district and get John Doc % tell
Richard Roe that what you want is the
vegy thing that be wants" The wit
ness denied thAt money bad ever
been paid to Ooncrcssmen to influences
them 10 favor Of the Company, bat hs
admitted that the Company's eOunse
had used mere money than usual whiie
Congress vas sitting. some of TIL
money might have been explained IL
champagne, dinnefs OF cigars. Whai
the witness meant By "ednea-
ton" wAs THAI the Csmpanl
h&d 10 show thai the Company
obiect or scheme would be more for tb'
bensfis Of the public than for the Com
PAW. They hsd 10 ''explain" 10 ihi
pespis az Washington that it was bette
20 build their lipe on soiid rock IN thi
Bay Of San FraneisS0, than Il was q
bald on piles. Neral influence bad u
BE- bronRht 70 bear on ths WashiBstoI
people. The witness Vas Questioned a
30 the leass Of the Central Pacific 20 thi
Soathern Pacific aud be admitted tha
be wAs interested IN both Companis
aud had recommended q consolidation
The pseeeedinRs thea adioaFusd-
O@issea the Uaioa Pacific.
wAsHxorox. April q. - Yesterda
Secretary Mostly, Of the Intsr-stat
Commercs Comm assion received ID
following by teisersRb from Boston
Il an advised that she Uston PAeihe
1 o. iaciaded in the sospeusi0n OF see
tioa I Of the Inter State CommeFee aoi
IN favor Of Tire TraEsoontinental line'
The omisaioa must haFs been aeci
dental. - % esusse ths Commtssi9
eeuld not insend 20 exciaae one nD
fram . saspenssou whlsh tncluiss Al
oshsrs. I andsrstAnd we wers boz rel
ressnied This yas an eesidenl whie
has not ceea explained What i1rs
ase Sfeps can % taken 10 have %
Caiou Paens fnc.ad@d cite TIE otbs
trsnsooatiHeu4Al hoesi
tsienedl Gas. y. ApAxs
Msssly foFEAz5sd thSs - TIE Goa